Counterfeit Electronics: The Threat to Military Preparedness and Homeland Security

PROBLEM: Counterfeit
electronic components, primarily from China, are threatening America’s
homeland security and military preparedness as well as critical
infrastructure such as telecommunications, power and
transportation. Counterfeiters take their essential raw materials from
e-waste exported from the United States and other countries, according
to a 2012 study by the U.S. Armed Services Committee.SOLUTION:
While the federal government and defense industries are working to
improve prevention and detection measures, experts say we must also
choke off the counterfeiters’ feedstock: e-waste exports. The Coalition
for American Electronics Recyclers is calling on Congress to enact responsible electronics
recycling policies that would accomplish this by requiring domestic
recycling of untested, nonworking e-waste.

The Primitive Process of Converting E-Waste to Counterfeits

Advanced technologies critical to protecting our security require
sensitive electronic components manufactured in ultra-clean environments
because even a small flake of dandruff can ruin a microchip. In
reality, counterfeit parts are salvaged from e-waste with primitive
practices, such as heating circuit boards over an open fire so
components are easier to remove. Obviously, microchips handled in this
way will be prone to failure — yet finished counterfeits look brand new
even to a trained eye.

JOBS.
Responsible domestic recycling will create over 42,000 new jobs and
nearly a billion dollars in annual payroll, based on a study conducted
by DSM Environmental Services.INVESTMENT. Sensible export reforms will enable American electronics recyclers to attract investment, expand capacity and create jobs.HIGH-VALUE EXPORTS. Trade
in tested, working electronics and commodity-grade material will remain
unrestricted and is expected to grow. Only exports of untested,
non-working equipment need to be restricted to address counterfeit
electronics.DATA SECURITY. Responsible recycling will close
security gaps that have led to data breaches, identity theft, and cyber
crime as data thieves harvest sensitive information from e-waste.RARE EARTHS. CAER
supports establishing a research program to study recovery of these
elements and other critical metals — materials critical to defense and
other technologies — from electronic scrap.SUSTAINABILITY. Responsible electronics recycling policy will promote development of a domestic industry with the capacity and resourcesto
deliver the services American businesses need to achieve sustainability
goals that are increasingly important to their bottom lines.

How you can get involved

No matter who you are, we encourage you to get involved in any number of ways:

If you are from an American electronics recycling business that supports our position, we'd love for you to join us.

Learn more about the facts and our position on these bills by reading our FAQ.